As South Africa’s principal central securities depository (CSD) and financial market infrastructure, Strate has been appointed by the South African Reserve Bank (SARB) as the publishing agent for the Johannesburg Interbank Average Rate (JIBAR) post-trade disclosures, an initiative that will contribute to the enhancement of the credibility and integrity of JIBAR.

The effort to enhance the credibility of JIBAR is part of the SARB’s broader plan to strengthen the critically important reference rate in the interim and secure a transition period while an alternative near risk-free reference rate is being developed.

For South African financial market participants and foreign and local investors alike, the post-trade disclosures will bring an enhanced level of transparency about primary and secondary market transactions related to JIBAR, helping to boost confidence in the rate and in South Africa’s standing as a well-regulated and efficient market.

Strate’s pivotal role in the domestic dematerialised money markets through the provision of trade settlement and custodial services, places it in a unique position to be able to provide post-trade disclosures for JIBAR.

It follows a global trend of regulators reviewing the lack of transparency in how interbank offered rates (IBORs) are determined and a move to alternative reference rates.

“Strate’s purpose is to serve the financial markets and we are pleased to be able to do this by publishing this data on our website and Data Services platform for use by financial market participants and investors,” says André Nortjé, Chief Executive Officer, Strate.

“Financial market participants and investors will gain access to rich data on volumes and averages in the South African market, such as the volume weighted average rate of all trade concluded the previous day, the rate occurring at the 10th, 25th, 75th and 90th percentiles of volume and the aggregate volume of all trades concluded the previous day,” says Gregory Naicker, Head: CSD Services at Strate.

Further benefits include providing the market with insight into primary, secondary and buy-back transactions, assisting banks in assessing their re-financing risk, especially during stressful periods or extraordinary events, using the outstanding nominal value of assets and giving foreign investors access to money market data, which could further encourage foreign investment into the country and improve confidence in the operational integrity of South Africa’s financial markets.

Click here to view the Money Market Publishing Agent Report.

How did you find yourself on this career path?

I have always been fascinated by banking. I was fortunate to start my career at Standard Bank and I immediately found a passion in corporate and investment banking. I joined the CIB division when the South African market was migrating investors from a certificated to uncertificated environment. This was the catalyst for my passion in the financial market

What and who inspires you?

I believe that all human beings should have the right to savings and the right to be able to be financially ‘free’. This belief system drives me in what I do. I am inspired by people that are motivated and driven by a similar belief system to me, such as our former president Nelson Mandela.

What advice would you give to anyone starting out their careers?

Understand what the meaning of success is to you. Choose a career that you want to wake up for every day – not one that you have t

What has been the most valuable skills you have ever learned? And how has this helped your career?

Listening – the ability to listen has enabled me to create value for clients in the environment that we operate.

Outward mindset – the ability to really understand what clients want and what impact I have – positive or negative – gives me the ability to provide solutions to problems in a manner that is a ‘win-win’ for everyone

Farzana Khan, Head of Collateral Services, moderated a panel at this year’s virtual Global Investor ISF Securities Finance Masterclass, this week.

The panel consisted of specialists in repo and collateral, namely: Amogelang Tlhomelang, Fixed Income Trader, Rand Merchant Bank; Gill Raine, Senior Consultant, ASISA; Staffan Ahlner, Global Head of Collateral, State Street; and Nicolette van der Merwe, Securities Finance Collateral Trader, Nedbank.

Panellists agreed that despite the turbulence caused by COVID-19 and Moody’s sovereign credit rating downgrade, the South African repo market has overall performed well in the past year. This was aided by the prudent approach of the South African Reserve Bank in introducing a number of mechanisms to provide funding and liquidity to the markets. The global repo market was also fairly resilient and stable over this difficult time.

South Africa is one of the few repo markets in the world with largely buy/sell-back transactions, which has some limitations. Panellists looked at the implications of this, especially when considering that international counterparts are more accustomed to classic repo.

To realise the benefits of classic repo you need efficient processes in place to execute substitutions and daily margin calls. In view of this, the global trend has been to outsource the administration of classic repo transactions to a triparty provider who can generate margin calls as well as instruct and facilitate security collateral substitutions, while still monitoring custody.

As one panellist put it, triparty platforms are “extremely efficient mechanisms”.

It was pointed out that tri-party collateral management infrastructures have been used for more than 20 years by many leading markets globally to enable money market liquidity and expand pools of eligible collateral.

Strate Collateral Services serves the South African financial market as a triparty collateral management provider that facilitates the automation of the administration of classic repo transactions. Please contact Strate Collateral Services for more information collateralmanagement@strate.co.za

As the Strate e-Voting platform reaches yet another milestone, this time by processing/hosting? Absa Investor Services’ first virtual shareholder meeting, the significant governance, transparency and shareholder engagement benefits of the platform are once again in the spotlight.

Using global technology provider Nasdaq’s blockchain technology to provide real-time voting, auditable voting records, real‐time access to results, accurate records and the full chain of proxies, the system provides benefits for shareholders, custodians, issuers and financial regulators.

“Strate’s e-Voting platform was designed to create shared value for the financial market ecosystem. Shareholders have greater control and visibility of the voting process and, importantly, better participation as they can be located anywhere in the world. E-Voting supports the relationship between shareholders, custodians and issuers and improves governance, which benefits financial regulators,” says Gregory Naicker, Head of CSD Services at Strate.

For listed companies, Strate’s solution requires no human intervention whatsoever. Auditing is undertaken by externally appointed auditors using the immutable ledger (blockchain technology) to underpin accuracy and security.

Developing the system was a collaboration between Strate and financial market participants, including banks, fund managers and other issuers.

“Strate and the South African financial market have together created a secure, efficient solution that will forever change shareholder voting. We are excited for Absa Investor Services now being able to use this new technology, which is perfectly suited to the current dynamic ways of work,” says Naicker.

Strate continues on its journey of serving the financial markets by working with companies to improve their business operations and shareholder engagement using the e-Voting platform.

For further information, the team can be contacted on e-Votingteam@strate.co.za.

How did you find yourself on this career path?

I do not think I found this career path – it certainly was not always that deliberate. What was deliberate though, was my need to always take on new and complex challenges. I never shied away from taking on more responsibility – even though I sometimes had little experience in that industry. Surround yourself with strong people who will help you figure it out.

What and who inspires you?

Creating a compelling vision for businesses and then leading people in realising the vision inspires me. Towards the latter part of your career, you also measure success differently; it is understanding the impact you have, not only for business outcomes, but also for people outcomes.

As for who inspires me – I love the “underdog” who excels against the odds.

What advice would you give to anyone starting out their careers?

Do not get stuck in one business or industry. Focus on gaining broad-based experience in multiple businesses and industries. It will serve you well later in your career.

If offered, take on leadership positions as soon as you can. Learning how to work with people is critical to all aspects of life, not only your work life.

What has been the most valuable skill you have ever learned?

Always start with defining the outcomes you want to achieve first – spend the most time here. The “how to execute” generally flows easily from here!

Understand the psychological drivers behind change. Change is the only constant, so if you are exceptional at managing it by taking people along on the journey, this will differentiate you.

How did you find yourself on this career path?

I have been very deliberate in selecting the companies that I have worked for and the roles that I have accepted. Value creation and making a difference have been key drivers. During my articles at KPMG Durban, I was fortunate enough to be exposed to various industry sectors, and I found my interest and passion was for financial services – specifically the investment and savings industry. The complexity of the industry and importance of the capability intrigued me. At the end of the day, this industry manages the financial wellness of individuals… that’s a big deal. I knew I wanted to be part of that!

My past work experience focused on a risk management perspective. My move to Strate expanded on this, as I took a role at a company that supports and enables the savings industry through the provision of financial market infrastructure for South Africa. Being critical in driving the success of the business contributes to the overall stability of the financial market – that is massive and excites me.

What and who inspires you?

Inspiration is derived from what is important to you and what drives you. Being my personal best and continuously growing drives me. I also quickly grasp any opportunity where I can create value to the business or an individual. My parents are my biggest inspiration – they instilled a strong culture of hard work, humility and a passion for adventures and trying new things.

What advice would you give to women starting out their careers?

Always be open to new challenges and opportunities. This is when you learn and grow the most. Sometimes the true benefit is only realised years down the line, but you would be glad you did it.

What has been the most valuable skill you have ever learned? And how has this helped your career?

I attribute by career journey so far to consistent hard work, building meaningful relationships and always having a willingness to learn something new.